REIT payouts and gains do not all get taxed the same way, which trips people up. A REIT's distribution can be a mix of interest, dividend, and return of capital, and each part is treated differently in your hands, so your payout is not simply tax-free income. On top of that, when you sell the units you may have capital gains, taxed based on how long you held them, the same short-term versus long-term split that applies to listed securities. Because a single distribution can have several components, the tax can be fiddly, and the rules here have changed more than once in recent years. Do not plan around a number you saw in an old article. Pull your annual statement, and confirm the current treatment of both the payouts and any gains with a CA before you file, since rates and rules change.
A curated summary to orient you, not advice. The resources below are the real value.
4 hand-picked resources, 4 India-specific, 4 link-checked. Pick how you want to dig in.
Why we picked it The India reference on short vs long term capital gains, holding periods, and rates for equity, funds, and property, so you know the tax before you sell.
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Open cleartax.in →Why we picked it A practical India-first reference for keeping personal and company finances (and their tax) cleanly separate.
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Open cleartax.in →Why we picked it What a REIT is, how it works in India, and why it gives property exposure with far more liquidity than a flat.
From ClearTax by ClearTax
Open cleartax.in →Why we picked it The tax detail on REIT and InvIT payouts and gains, so you know what you actually keep before you invest.
From ClearTax by ClearTax
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